Multiple Choice
In Bertrand competition with differentiated goods, the demand curve for bags of Wilson tennis balls is qW = 80 - 4PW + 2PD , and the demand curve for bags of Dunlop tennis balls is qD = 80 - 2PD + PW. The two firms both have zero marginal costs. How many bags of tennis balls does each firm produce?
A) qW = 44; qD = 44
B) qW = 64; qD = 48
C) qW = 16; qD = 24
D) qW = 38; qD = 32
Correct Answer:

Verified
Correct Answer:
Verified
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